The ecommerce market in India has registered a growth rate of 19.1% in 2016-2017 and reached $33 billion in value. Indian government’s economic survey throws light on the ecommerce industry of the country. The market value is still 30% less than what Chinese companies sold on Singles day last year.
As compared to 2017, the country’s Information Technology enabled service sector has gone up to $140 billion by registering a growth of 8% last year. However, as compared to 2006, the IT related export percentage has gone down by 1% and now stands at 67%. The report stated that software exports registered a negative growth of 0.7% in 2016-17. It grew by 2.3% in 2017-18. UK, EU and the USA account for 90% of the total exports. However, the overall IT export has grown by 7.6% to $116 billion from $108 billion.
There are a number of challenges facing the traditional geographies, the demand from Middle East Asia, Latin America and APAC is growing and there are new opportunities emerging from the expansion in Europe, Africa, China and Japan. According to the report, the efforts of the government to make business and commerce easy have been widely appreciated.
The report further stated that the next frontier on the ease of doing business is to address the pendency, delays and the backlogs in the judicial and appellate arenas. These hamper dispute resolution, discourage investment, hamper tax collections, and stall projects and stress taxpayers by escalating legal costs. Coordination between the judiciary and the government could address the delay and boost economic activity. The survey has also thrown light on the fact that it is the large scale companies whose loans turn into Non Performing Assets while SMEs have lower NPAs.